Definition - What does Special Features mean?
Special features are the details in the insurance contract that make it different from any other legally binding contract, such as honesty in representation, which, when violated, can void the insurance policy.
Insuranceopedia explains Special Features
There are a number of special features that make an insurance contract unique. Examples of them include:
1. An insurance contract is written by the seller (the insurance company) only. Most contracts are drawn by all the parties involved.
2. It operates on the principle of utmost good faith. In other words, there is a tacit agreement between the seller and the buyer that all the necessary information must have been exchanged. To violate this principle means possibly voiding the contract.
3. The obligation of the seller is only conditional and is only triggered if and when the insured loss happens. If the insured loss never occurs, the buyer does not get anything.
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